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Electrical Power Characteristics and Economic Analysis of Distributed Generation System Using Renewable Energy: Applied to Iron and Steel Plants

Author

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  • Hee-Kwan Shin

    (KEPCO (Korea Electrical Power Company), R&D Department, 211 Moonwha-ro, Najoo 58326, Korea
    Graduate Institute of Ferrous Technology (GIFT), Pohang University of Science and Technology (POSTECH), 77 Cheongam-Ro, Nam-Ku, Pohang 37673, Korea)

  • Jae-Min Cho

    (Graduate Institute of Ferrous Technology (GIFT), Pohang University of Science and Technology (POSTECH), 77 Cheongam-Ro, Nam-Ku, Pohang 37673, Korea)

  • Eul-Bum Lee

    (Graduate Institute of Ferrous Technology (GIFT), Pohang University of Science and Technology (POSTECH), 77 Cheongam-Ro, Nam-Ku, Pohang 37673, Korea
    Department of Industrial and Management Engineering, Pohang University of Science and Technology (POSTECH), 77 Cheongam-Ro, Nam-Ku, Pohang 37673, Korea)

Abstract

The intention of this paper is to respond to the increase in electric power demand and global environmental issues in iron and steel plants. In particular, the authors studied the characteristics of the power flow from a distributed generation (DG) system connected to the electrical power system of a steel plant. In addition, the authors carried out an economic analysis of the DG system by calculating the capital investment cost that could convert the profit of the DG into a certain profit. The research was conducted based on the power system configuration and basic data of a steel plant in operation in Korea. To analyze the unconnected DG of the power system, a transmission voltage target was set, and the voltage characteristics of 22.9 and 6.6 kV systems were analyzed. The authors analyzed the connected DG system in terms of the effect of link location, power factor, and output power by case. The authors also studied the power loss variation in the output power of a DG system. Various simulations with MATLAB software and NPV (Net Present Value) and IRR (Internal Rate of Return) methods were run in an economic analysis to compare the case of not introducing an energy storage system (ESS), and the case of introducing an ESS in terms of comprehensive energy utilization. The results of the economic analysis indicated that the scenario with ESS is more economically advantageous, resulting from the peak power reduction effect and the evasion cost due to the elimination of the power generation operation of the peak load. Developed countries have established best available technology (BAT) standards and developed related practices to apply them to industrial plants, actively preparing for environmental issues in the future. In Korea and in some other countries, the application of distributed generation in conjunction with the steel plant sector will be effective for improving energy efficiency and responding to environmental issues.

Suggested Citation

  • Hee-Kwan Shin & Jae-Min Cho & Eul-Bum Lee, 2019. "Electrical Power Characteristics and Economic Analysis of Distributed Generation System Using Renewable Energy: Applied to Iron and Steel Plants," Sustainability, MDPI, vol. 11(22), pages 1-27, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:22:p:6199-:d:284081
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    References listed on IDEAS

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    2. Laetitia Uwineza & Hyun-Goo Kim & Jan Kleissl & Chang Ki Kim, 2022. "Technical Control and Optimal Dispatch Strategy for a Hybrid Energy System," Energies, MDPI, vol. 15(8), pages 1-19, April.
    3. Ciprian Mihai Coman & Adriana Florescu & Constantin Daniel Oancea, 2020. "Improving the Efficiency and Sustainability of Power Systems Using Distributed Power Factor Correction Methods," Sustainability, MDPI, vol. 12(8), pages 1-20, April.

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